CPG Terms Explained, a series by Cyril Ovely

Cyril Ovely, Co-Founder and CTO, Vxceed  ·  August 2026

What Is Numeric Distribution? The Simplest (and Most Misleading) Measure of CPG Reach

Numeric Distribution is the percentage of stores in a market that carry your product, the simplest measure of how widely your brand is available to shoppers.

The short answer

Numeric Distribution (ND) answers one question: "Out of all the stores in this market, what percentage stock my product?" If there are 1,000 stores and 650 carry your brand, your numeric distribution is 65%. It is also called Percent of Stores Selling (PSS).

It is the easiest distribution metric to understand, and the most dangerous to rely on alone. A brand can have high numeric distribution and still be missing most of the market's sales volume, because not all stores are created equal.

Why it matters in CPG

Numeric distribution is the starting point for understanding your market presence. It tells you the breadth of your footprint, how many doors you are through. For new product launches, tracking ND over time shows whether distribution is building at the pace you need.

But ND becomes misleading when stores vary dramatically in size. Consider two scenarios:

• Scenario A: You are in 650 stores, all small independents averaging $5K per week in total sales.
• Scenario B: You are in 200 stores, including 50 supermarkets averaging $500K per week and 150 mid-size stores averaging $50K per week.

Scenario A gives you 65% ND, but total market coverage is modest. Scenario B gives you 20% ND, yet you are in the stores where most shopping happens. This is why numeric distribution is almost always analyzed alongside ACV distribution (which weights stores by sales volume) and Total Distribution Points (which combines reach with assortment depth).

When ND is the right metric:

• Tracking new product launch velocity: "How many stores have listed us in the first 90 days?"
• Measuring coverage in homogeneous markets where most stores are similar in size
• Setting minimum distribution standards: "Every territory must achieve 80% ND before trade investment increases"

When ND misleads:

• Markets with high store size variance (a few hypermarkets plus thousands of small stores)
• Comparing distribution across different retail channels
• Evaluating whether distribution investment is reaching the right outlets

How it works in practice

Scenario: A sauce brand launches a new variant. After 3 months, the sales team reports the following:

The story ND alone would tell: "Great launch, 72% distribution in 90 days." The full story: Reach is strong by volume (89% ACV), but the product is listed in many small stores that are not ordering (activation rate 61%). The 28% of stores not listed are the smallest outlets, so the ACV impact is low. The real issue is not ND; it is converting listings into active orders.

ND over time for a mature brand should be relatively stable. Declining ND signals delistings or distribution losses. Growing ND should be investigated: is it new outlets (good) or a change in how the market universe is counted (methodology)?

The formula

Numeric Distribution (%) = (Number of stores carrying your product ÷ Total stores in market) × 100

Example:
Stores carrying your brand = 450
Total stores in market = 600
Numeric Distribution = (450 ÷ 600) × 100 = 75%

Key metrics & related concepts

• ACV Distribution %: the weighted version that accounts for store size
• Total Distribution Points (TDP): ACV × Average Items Carried; combines reach and depth into one score
• Activation Rate: the percentage of listed stores that are actually ordering
• White Space: stores that should carry your product but do not
• Percent of Stores Selling (PSS): another name for Numeric Distribution

Common mistakes & misconceptions

Mistake #1: Celebrating high ND without checking ACV.
"90% numeric distribution!" sounds excellent, until you realize the 10% of stores you are missing include the top 5 supermarket chains. Always pair ND with ACV to understand the quality of your coverage.

Mistake #2: Using ND to compare across markets.
Market A has 500 stores; Market B has 5,000. Both have 70% ND. But Market A's 150 unserved stores might represent more sales volume than Market B's 1,500. ND does not account for market structure, so use ACV for cross-market comparisons.

Mistake #3: Confusing ND with active distribution.
A store can list your product (ND counts it) but never place a reorder. Your numeric distribution might be 80%, but if only 60% of those stores are actively ordering, your effective distribution is much lower. Track activation rate alongside ND.

Mistake #4: Setting ND targets without considering the outlet universe.
If your market has 10,000 stores but 3,000 are tiny outlets that do not justify the cost to serve, a 100% ND target is wasteful. Set ND targets based on the addressable universe, stores that meet minimum volume or strategic criteria.

Regional variations

Numeric Distribution is used worldwide. The concept is universal; the data quality varies.

• US: Called "Percent of Stores Selling" (PSS) as often as "Numeric Distribution." Calculated from NielsenIQ and Circana (formerly IRI) scanner panels. Highly reliable data with consistent store definitions.
• India: ND calculation is challenging due to the massive traditional trade universe (millions of kirana stores). Companies often track ND within their distributor covered universe rather than the total market.
• NZ/AU: With fewer, larger stores, ND and ACV tend to correlate more closely than in fragmented markets. A 70% ND in NZ likely means 80%+ ACV because the missing 30% are small specialty stores.
• UK: Similar to NZ/AU. Concentrated retail means ND and ACV are closely aligned. The symbol group channel (Best One, Londis, Costcutter) creates a middle tier where ND may lag ACV.

How leading CPG teams use numeric distribution

Leading teams do not just track ND. They decompose it. They analyze ND by channel, by territory, by distributor, and by customer segment to identify exactly where distribution gaps exist. They combine ND with activation rate data to distinguish between listing problems (stores will not list you) and ordering problems (stores listed but not buying). And they track ND velocity, the rate at which new stores are being added, to ensure distribution is building at the pace the business plan requires.